\(\begin{array}{l} \text { Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) }\\ \begin{array}{ccccccccc} \hline \begin{array}{c} \text { Real } \\ \text { GDP } \end{array} & \begin{array}{c} \text { Net } \\ \text { taxes } \end{array} & \begin{array}{c} \text { Disposable } \\ \text { income } \\ (Y) \end{array} & \begin{array}{c} \text { Consumption } \\ (N T) \end{array} & \begin{array}{c} \text { Saving } \\ (Y-N T) \end{array} & \begin{array}{c} \text { Planned } \\ \text { investment } \\ (S) \end{array} & \begin{array}{c} \text { Net } \\ \text { exports } \\ (N X) \end{array} & \begin{array}{c} \text { Government } \\ \text { purchases } \\ (G) \end{array} & \begin{array}{c} \text { Planned } \\ \text { aggregate } \\ \text { expenditure } \\ (C+I+N X+G) \end{array} \\ \hline 3.0 & 0.9 & 2.1 & 2.0 & 0.1 & 0.5 & -0.2 & 0.9 & 3.2 \\ 3.6 & 0.9 & 2.7 & 2.4 & 0.3 & 0.5 & -0.2 & 0.9 & 3.5 \\ 4.2 & 0.9 & 3.3 & 2.8 & 0.5 & 0.5 & -0.2 & 0.9 & 4.0 \\ 4.8 & 0.9 & 3.9 & 3.2 & 0.7 & 0.5 & -0.2 & 0.9 & 4.4 \\ 5.4 & 0.9 & 4.5 & 3.6 & 0.9 & 0.5 & -0.2 & 0.9 & 4.8 \\ \hline \end{array} \end{array}\) -Refer to the table in the exhibit.What is the marginal propensity to save?

A) 5/6 B) 4/5 C) 3/4 D) 1/3 A) 5/6 B) 4/5 C) 3/4 D) 1/3

\(\begin{array}{l} \text { Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) }\\ \begin{array}{ccccccccc} \hline \begin{array}{c} \text { Real } \\ \text { GDP } \end{array} & \begin{array}{c} \text { Net } \\ \text { taxes } \end{array} & \begin{array}{c} \text { Disposable } \\ \text { income } \\ (Y) \end{array} & \begin{array}{c} \text { Consumption } \\ (N T) \end{array} & \begin{array}{c} \text { Saving } \\ (Y-N T) \end{array} & \begin{array}{c} \text { Planned } \\ \text { investment } \\ (S) \end{array} & \begin{array}{c} \text { Net } \\ \text { exports } \\ (N X) \end{array} & \begin{array}{c} \text { Government } \\ \text { purchases } \\ (G) \end{array} & \begin{array}{c} \text { Planned } \\ \text { aggregate } \\ \text { expenditure } \\ (C+I+N X+G) \end{array} \\ \hline 3.0 & 0.9 & 2.1 & 2.0 & 0.1 & 0.5 & -0.2 & 0.9 & 3.2 \\ 3.6 & 0.9 & 2.7 & 2.4 & 0.3 & 0.5 & -0.2 & 0.9 & 3.5 \\ 4.2 & 0.9 & 3.3 & 2.8 & 0.5 & 0.5 & -0.2 & 0.9 & 4.0 \\ 4.8 & 0.9 & 3.9 & 3.2 & 0.7 & 0.5 & -0.2 & 0.9 & 4.4 \\ 5.4 & 0.9 & 4.5 & 3.6 & 0.9 & 0.5 & -0.2 & 0.9 & 4.8 \\ \hline \end{array} \end{array}\) -Refer to the table in the exhibit.What is the equilibrium level of income?

A) where real GDP = nominal GDP B) where real GDP = total planned expenditures C) where disposable income = total planned expenditures D) where government spending equals taxation A) where real GDP = nominal GDP B) where real GDP = total planned expenditures C) where disposable income = total planned expenditures D) where government spending equals taxation

Exam 10: Aggregate Expenditure and Aggregate Demand

Suppose the level of autonomous spending increases at a given price level.How does this relate to the aggregate expenditure line and aggregate demand?

(Multiple Choice)

4.9/5

(37)

Question 121

What is the effect of a decrease in the price level?

(Multiple Choice)

4.9/5

(39)

Question 122

Other things constant, how does an increase in the marginal propensity to consume affect the value of the multiplier?

(Multiple Choice)

4.8/5

(34)

Question 123

Which of the following is NOT included in the aggregate expenditure line?

(Multiple Choice)

5.0/5

(39)

Question 124

On the aggregate expenditure graph, suppose autonomous investment increases by $20 billion.What will be the effect on the aggregate expenditure line?

(Multiple Choice)

4.8/5

(30)

Question 125

Suppose an increase in planned investment of $70 billion causes equilibrium output demanded to rise by $280 billion.What is the value of the marginal propensity to consume?

(Multiple Choice)

4.7/5

(34)

Question 126

How will an increase in the price level affect the aggregate demand curve?

(Multiple Choice)

4.9/5

(39)

Question 127

Suppose planned autonomous investment increases by $200 billion and the marginal propensity to consume equals 0.80.What will be the increase in the equilibrium level of real GDP?

(Multiple Choice)

4.7/5

(32)

Question 128

Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) Real GDP Net taxes Disposable income (Y) Consumption (NT) Saving (Y-NT) Planned investment (S) Net exports (NX) Government purchases (G) Planned aggregate expenditure (C+I+NX+G) 3.0 0.9 2.1 2.0 0.1 0.5 -0.2 0.9 3.2 3.6 0.9 2.7 2.4 0.3 0.5 -0.2 0.9 3.5 4.2 0.9 3.3 2.8 0.5 0.5 -0.2 0.9 4.0 4.8 0.9 3.9 3.2 0.7 0.5 -0.2 0.9 4.4 5.4 0.9 4.5 3.6 0.9 0.5 -0.2 0.9 4.8 -Refer to the table in the exhibit.What is the marginal propensity to save?

(Multiple Choice)

4.8/5

(28)

Question 129

Schedule for Real GDP, Net Taxes and Government Purchases (Trillions of Dollars) Real GDP Net taxes Disposable income (Y) Consumption (NT) Saving (Y-NT) Planned investment (S) Net exports (NX) Government purchases (G) Planned aggregate expenditure (C+I+NX+G) 3.0 0.9 2.1 2.0 0.1 0.5 -0.2 0.9 3.2 3.6 0.9 2.7 2.4 0.3 0.5 -0.2 0.9 3.5 4.2 0.9 3.3 2.8 0.5 0.5 -0.2 0.9 4.0 4.8 0.9 3.9 3.2 0.7 0.5 -0.2 0.9 4.4 5.4 0.9 4.5 3.6 0.9 0.5 -0.2 0.9 4.8 -Refer to the table in the exhibit.What is the equilibrium level of income?

(Multiple Choice)

4.8/5

(28)

Question 130

-Refer to the graph in the exhibit.Which of the following best describes the situation at point C?

(Multiple Choice)

4.9/5

(37)

Question 131

Suppose the price level increases.How will the aggregate demand curve be affected?

(Multiple Choice)

4.8/5

(33)

Question 132

Suppose the multiplier is 4.What would be the cause of a $10 billion increase in autonomous investment?

(Multiple Choice)

4.8/5

(33)

Question 133

In the income-expenditure framework, if planned aggregate expenditures are less than real GDP.How will inventories be affected?

(Multiple Choice)

4.9/5

(39)

Question 134

Suppose planned investment increases by $200 billion and the marginal propensity to consume equals 0.80.By what amount will the aggregate expenditure line shift upward at every level of real GDP?

(Multiple Choice)

4.8/5

(37)

Question 135

Suppose an economy is in equilibrium when net taxes = $50 trillion, saving = $40 trillion, government purchases = $50 trillion, exports = $30 trillion, and imports = $10 trillion.What must planned investment spending be equal to?

(Multiple Choice)

4.7/5

(33)

Question 136

-Refer to the table in the exhibit.At the equilibrium level of GDP, what do leakages equal?

(Multiple Choice)

4.7/5

(45)

Question 137

Consider the aggregate expenditure line.What do the graph's horizontal axis and the vertical axis represent?

(Multiple Choice)

4.8/5

(40)

Question 138

What is the definition of the simple multiplier?

(Multiple Choice)

4.8/5

(33)

Question 139

How will a rise in the price level affect the aggregate expenditure curve and the aggregate demand curve?

(Multiple Choice)

4.9/5

(36)

Question 140

Suppose the level of autonomous spending increases at a given price level.How does this relate to the aggregate expenditure line and aggregate demand?

What is the effect of a decrease in the price level?

Other things constant, how does an increase in the marginal propensity to consume affect the value of the multiplier?

Which of the following is NOT included in the aggregate expenditure line?

On the aggregate expenditure graph, suppose autonomous investment increases by $20 billion.What will be the effect on the aggregate expenditure line?

Suppose an increase in planned investment of $70 billion causes equilibrium output demanded to rise by $280 billion.What is the value of the marginal propensity to consume?

How will an increase in the price level affect the aggregate demand curve?

Suppose planned autonomous investment increases by $200 billion and the marginal propensity to consume equals 0.80.What will be the increase in the equilibrium level of real GDP?

-Refer to the graph in the exhibit.Which of the following best describes the situation at point C?

Suppose the price level increases.How will the aggregate demand curve be affected?

Suppose the multiplier is 4.What would be the cause of a $10 billion increase in autonomous investment?

In the income-expenditure framework, if planned aggregate expenditures are less than real GDP.How will inventories be affected?

Suppose planned investment increases by $200 billion and the marginal propensity to consume equals 0.80.By what amount will the aggregate expenditure line shift upward at every level of real GDP?

Suppose an economy is in equilibrium when net taxes = $50 trillion, saving = $40 trillion, government purchases = $50 trillion, exports = $30 trillion, and imports = $10 trillion.What must planned investment spending be equal to?

-Refer to the table in the exhibit.At the equilibrium level of GDP, what do leakages equal?

Consider the aggregate expenditure line.What do the graph's horizontal axis and the vertical axis represent?

What is the definition of the simple multiplier?

How will a rise in the price level affect the aggregate expenditure curve and the aggregate demand curve?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, Supply, and Markets

Algebraic Approach to Demand, Supply, and Equilibrium

Introduction to Macroeconomics

Tracking the Canadian Economy

Unemployment and Inflation

Productivity and Growth

Aggregate Supply

Fiscal Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy in an Open Economy

Macro Policy Debate: Active or Passive

International Finance

International Trade

Economic Development

Understanding Graphs

Filters